Slide 1: Financial Results for the year ended 30 September 2018
ZAMBEEF PRODUCTS PLC Financial Results for the year ended 30 September 2018 1
Slide 2: Disclaimer
Disclaimer. THIS DOCUMENT (“DOCUMENT”) IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR GENERAL BACKROUND INFORMATION. THE DISTRIBUTION OF THIS DOCUMENT MAY BE RESTRICTED BY LAW. ACCORDINGLY, THIS DOCUMENT MAY NOT BE DISTRIBUTED IN ANY JURISDICTION EXCEPT IN ACCORDANCE WITH THE
Slide 3: Introduction
Introduction Zambeef’s strategy is translating into improved results and the strategy will continue to be executed: Consistent revenue growth through expanding the retail network and driving the CCFP and stock feed operations; Margin improvements by investing capex in high margin parts of the bu
Slide 4: Overview
Overview Continued rollout of Gross Profit Margin & Disposal of non-core Strong performance Zambeef Macro outlets Volume Growth assets & Shoprites from Retailing & CCFP 2018 Gross Profit margins Sold 90% of Zampalm to division and Macro Stores 29 Stockfeed division and volumes up in IDC for USD 16m
Slide 5: Financial Overview
Financial Overview Revenue Gross Profit 14.2% 2018: ZMW 2.78bn 20.1% 2018: ZMW 959.2m (ZMW) (ZMW) 2017: ZMW 2.44bn 2017: ZMW 798.6m 9.6% 2018: USD 280.3m 15.3% 2018: USD 96.7m (USD) (USD) 2017: USD 255.8m 2017: USD 83.9m EBITDA Adjusted Profit Before Tax 69.6% 2018: ZMW 294.4m 4740.7% 2018: ZMW 50.3
Slide 6: Divisional Overview (ZMW)
Divisional Overview (ZMW) Retail & CCFP Stockfeed Revenue Revenue 2018: ZMW 2 004.7m 6.6% 2018: ZMW 706.0m 6.5% 5.3% 2017: ZMW 1 883.0m 2017: ZMW 662.1m EBITDA EBITDA 45.8% 2018: ZMW 193.5m 30.5% 2018: ZMW 81.0m 2017: ZMW 132.7m 2017: ZMW 116.6m Cropping Other (continuing) Gross Profit Revenue 2018:
Slide 7: Divisional Overview (USD)
Divisional Overview (USD) Retail & CCFP Stockfeed Revenue Revenue 2.2% 2018: USD 202.1m 2.3% 2018: USD 71.2m 2017: USD 197.8m 2017: USD 69.5m EBITDA EBITDA 39.9% 2018: USD 19.5m 2018: USD 8.2m 33.3% 2017: USD 13.9m 2017: USD 12.2m Cropping Other (continuing) Gross Profit Revenue 35.2% 2018: USD 19.1
Slide 8: Retailing Network
Retailing Network Actual Actual Actual Actual 2018 2017 2016 2015 Zambia Zambeef Outlets 67 81 87 91 Zambeef Macros 29 19 10 6 Novatek 24 17 10 5 Zamshu Outlets 19 12 2 0 Bakery 1 0 0 0 140 129 109 102 Shoprites 34 31 31 26 Total Zambia 174 160 140 128 Nigeria Shoprite 25 23 20 14 Like-for-like re
Slide 9: Retailing Revenue Channel Analysis (ZMW’000)
Retailing Revenue Channel Analysis (ZMW’000) 13.5% 699 532 605 056 57.0% 399 831 8.5% 2018 2017 254 728 263 411 242 729 84.2% 15.4% 149 022 119 221 103 320 80 915 Outlets Macros Shoprite Novatek Others 2018 Others; 2017 Others; 7.8% 7.5% Novatek; Novatek; 9.7% 5.9% Outlets; Shoprite; 39.4% 17.6% Out
Slide 10: Retailing Revenue Channel Analysis (USD’000)
Retailing Revenue Channel Analysis (USD’000) 17.0% 73 480 60 994 50.6% 40 306 2018 4.1% 2017 26 757 26 553 25 497 76.7% 10.7% 15 022 12 018 10 853 8 499 Outlets Macros Shoprite Novatek Others 2018 Others; 2017 Others; 7.8% 7.5% Novatek; Novatek; 9.7% 5.9% Outlets; Shoprite; 39.4% 17.6% Outlets; Shop
Slide 11: Cold Chain Food Products
Cold Chain Food Products Strong volume growth: • Total CCFP 5.7% • Beef 7.6% • Chicken 9.1% • Day Old Chicks 34.6% • Pork (8.1%) • Dairy (3.9%) • Fish (14.3%) • Egg (7.6%) 2018 Challenges experienced in CCFP: • An outbreak of Cholera in January 2018 affected the sale of Beef heads, bones and off
Slide 12: Retail & Cold Chain Food Products P&L
Retail & Cold Chain Food Products P&L 2018 2017 2018 2017 % Change % Change ZMW'000 ZMW'000 USD'000 USD'000 Revenue 2 004 711 1 882 955 6.5% 202 088 197 789 2.2% Gross Profit 578 987 470 417 23.1% 58 366 49 414 18.1% Overheads (385 484) (337 693) 14.2% (38 859) (35 472) 9.5% EBITDA 193 503 132 724 4
Slide 13: Stockfeed P&L
Stockfeed P&L 2018 2017 2018 2017 ZMW'000 ZMW'000 % Change USD'000 USD'000 % Change Revenue 706 008 662 068 6.6% 71 170 69 545 2.3% Gross Profit 163 442 166 884 -2.1% 16 476 17 530 -6.0% Overheads (82 460) (50 300) 63.9% (8 313) (5 284) 57.3% EBITDA 80 982 116 584 -30.5% 8 163 12 246 -33.3% Gross Pr
Slide 14: Cropping P&L
Cropping P&L 2018 2017 % 2018 2017 % ZMW'000 ZMW'000 Change USD'000 USD'000 Change Revenue 515 585 505 738 1.9% 51 974 53 124 -2.2% Gross Profit 189 601 134 556 40.9% 19 113 14 134 35.2% Overheads (118 729) (118 152) 0.5% (11 969) (12 411) -3.6% EBITDA 70 872 16 404 332.0% 7 144 1 723 314.6% GP % 36
Slide 15: Other Divisions P&L
Other Divisions P&L 2018 2017 % 2018 2017 % ZMW'000 ZMW'000 Change USD'000 USD'000 Change Revenue 141 452 161 387 -12.4% 14 259 16 952 -15.9% Gross Profit 27 129 26 774 1.3% 2 735 2 812 -2.8% Overheads (18 521) (15 014) 23.4% (1 867) (1 577) 18.4% EBITDA 8 608 11 760 -26.8% 868 1 235 -29.8% GP% 19.2
Slide 16: Abridged Balance Sheet
Abridged Balance Sheet 30-Sept-18 30-Sep-17 30-Sept-18 30-Sep-17 ZMW'000 ZMW'000 USD'000 USD'000 Non Current Assets 3 132 288 3 041 745 255 907 314 555 Current Assets 1 031 956 787 956 84 310 81 485 TOTAL ASSETS 4 164 244 3 829 701 340 217 396 040 Capital and Reserves 3 107 114 2 890 196 253 852 298
Slide 17: Abridged Cash Flow Statement
Abridged Cash Flow Statement 30-Sept-18 30-Sept-17 30-Sept-18 30-Sept-17 ZMW'000 ZMW'000 USD'000 USD'000 Profit before taxation 28 011 5 450 2 823 572 EBITDA 294 390 173 629 29 677 18 239 Net cash inflow from operating activities 79 635 188 028 8 028 19 751 Movement in Working Capital (214 755) 14 3
Slide 18: Capex
Capex Main Capital Expenditure during 2018: USD 4.2m on rollout of new Zambeef Macro outlets; USD 2.5m on new Mpongwe stock feed plant; USD 1.5m on expansion of Zamhatch hatchery and breeder farm; USD 1.2m for expansion of Zam Chick processing plant; USD 0.8m on new Kitwe Processing plant;
Slide 19: Capex
Capex Key projects completed in 2018: Continue to grow retail network and drive retail sales to help grow CCFP and stock feed operations (10 Zambeef Macros and three Shoprite stores opened); Commission new Copperbelt distribution hub which will increase capacity and improve efficiencies in the C
Slide 20: Summary and Outlook
Summary and Outlook Macro backdrop o Zambia’s GDP is forecast to grow by 4% in 2019 o Stable outlook for commodity prices Ten Macro outlets opened in 2018 o Aim to open 10 new Macro outlets each year for next three years Continue to drive volumes and focus on rollout of Shoprite stores o Zambi
Slide 21: Questions?
Questions? 21
Slide 22: Appendices
Appendices 22
Slide 23: Appendix 1: Abridged Income Statement
Appendix 1: Abridged Income Statement 30-Sept-18 30-Sept-17 % Change 30-Sept-18 30-Sept-17 % Change ZMW'000 ZMW'000 (ZMW) USD'000 USD'000 (USD) Revenue 2 780 589 2 435 182 14.2% 280 301 255 796 9.6% Cost of Sales (1 821 430) (1 636 551) -11.3% (183 612) (171 906) -6.8% Gross Profit 959 159 798 631 2
Slide 24: Appendix 2: Segmental Revenue, GP & EBITDA (ZMW’000)
Appendix 2: Segmental Revenue, GP & EBITDA (ZMW’000) Revenue Revenue Gross Profit Gross Profit Overheads Overheads EBITDA 2018 EBITDA 2017 Division 2018 2017 2018 2017 2018 2017 ZMW'000 ZMW'000 ZMW'000 ZMW'000 ZMW'000 ZMW'000 ZMW'000 ZMW'000 Retail & CCFP 2 004 711 1 882 955 578 987 470 417 (385 484
Slide 25: Appendix 3: Segmental Revenue, GP & EBITDA (USD’000)
Appendix 3: Segmental Revenue, GP & EBITDA (USD’000) Revenue Revenue Gross Profit Gross Profit Overheads Overheads EBITDA 2018 EBITDA 2017 Division 2018 2017 2018 2017 2018 2017 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Retail & CCFP 202 088 197 789 58 366 49 414 (38 859) (35 4
Slide 26: Appendix 4: Segmental Distribution of Gross Profit
Appendix 4: Segmental Distribution of Gross Profit 2018 2017 Other; 2.8% Other; 3.4% Cropping; Cropping; 19.8% 16.8% Retail & CCFP; Retail & CCFP; 60.4% 58.9% Stock Feed; Stock Feed; 17.0% 20.9% % of Group Gross Profit 26